Accelerating the transition to employment at benefit exhaustion: still possible after four years of unemployment?

Lars Geerdsen, Stéphanie Vincent Lyk-Jensen () and Cecilie Dohlmann Weatherall ()
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Stéphanie Vincent Lyk-Jensen: SFI - The Danish National Centre for Social Research
Cecilie Dohlmann Weatherall: Kraks Fond Institute for Urban Economic Research

Empirical Economics, 2018, vol. 54, issue 3, No 9, 1107-1135

Abstract: Abstract This paper provides evidence of how the long-term unemployed react to the threat of running out of unemployment insurance (UI) after receiving it for nearly 4 years. To identify the effect of UI exhaustion, we make use of a 1999 Danish legislative change that progressively reduced potential benefit duration from 5 to 4 years. We find that shortening UI duration hastens the transition to employment throughout the unemployment spell up to benefit exhaustion even if it occurs as long as 4 years later. However, although the proportional effect is large, it is small in absolute value.

Keywords: Unemployment duration; Benefit entitlement; Unemployment insurance; UI exhaustion; Shortening of UI (search for similar items in EconPapers)
JEL-codes: C41 J65 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s00181-017-1236-3

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